HydroQuebec has embarked on a program to replace about 25,000 next generation smart meters because the devices are not reporting data collected.
A Hydro-Quebec spokesman says the issue appears to have been triggered by high humidity levels and does not affect public safety.
The smart meters were made by a Swiss company and are designed to measure electricity consumption and then transmit the information to the utility.
Affected clients will be notified and the meters will be replaced over the next several months. The manufacturer will assume the costs.
The smart meter program was introduced three years ago at a cost of $1 billion.
About 67,000 mechanical meters must still be replaced.
Hydro estimates it will save about $80 million dollars per year once the replacement program is completed.